David Burrows
Meridian Gold
MNG-T
WAIT
May 03, 2005
Keep a close eye on golds. His sector model indicates they are pretty sold out. Wait for buying to come back into the market. US$ has been strengthening against the Euro and there's been a very tight correlation with gold to the US$. Look for 1) stocks to rally along with the gold price and 2) gold starting to trade independently of the US$.
(A Top Pick Jan 11/06. Up 3.3%.) Their flagship mine is in a bit of transition right now because of expansion. Still likes. Should have very good upside.
Company hasn't grown. New CEO, which may mean they're going to start growing by acquisition or, it might be acquired because it is a friendlier face. Have some very good projects.
Has been an enigma, in that they have good operations, good management but didn't seem to go anywhere. Have been hit with a lot of operational problems in Argentina. Have some very exciting expiration projects that they are working on. Outlook seems good. The big question is, will it be a takeover target.
Yamana Gold (YRI-T) trying to acquire. Management/shareholders are opposed. Grew through exploration while Yamana grew through acquisitions. Have a number of projects that are not being recognized by the market. Possibly has some other suitors.